An Evolving Timetable

Keep in mind that no goal is short-, medium-, or long-term by definition. For instance, retirement will be a long-term goal when you're 35, but will probably be a short-term goal when you're 65. Similarly, paying for your child's higher education will be a long-term goal when she's a baby, but a short-term goal when she's a high-school sophomore. So your investing approach—and your choice of investments—will need to evolve as you draw closer to each of your goals.

As your priorities or life circumstances change, you may also find that you want to delay certain goals by a year or two, while others you may want to try to meet sooner. And some—such as a second car that you were planning to buy or an expensive family trip—you may decide to forego altogether. It's important to stay flexible and adapt your timetable to your changing needs and priorities.